California's Unemployment Rate Grows To 4.1%: Employers Add 26,800 Jobs

By Seth Sandronsky | The Center Square contributor, The Center Square California

December 19, 2022

(The Center Square) – "California’s rate of unemployment increased to 4.1% in November versus 4.0% in October," according to the state Employment Development Department. Golden State employers added 26,800 nonfarm payroll jobs in November compared with an upward-revised 59,800 new hires in October.

"In the meantime, across the U.S., employers added 263,000 nonfarm payroll jobs in November compared with October’s 261,000 new hires," according to the federal Bureau of Labor Statistics. The national jobless rate rose stayed at 3.7% in November, the same as in October.

In other BLS data, “State Employment and Unemployment Summary,” California, the nation’s most populous state, led the way in hiring. “Over the year, nonfarm payroll employment increased in 44 states and was essentially unchanged in 6 states and the District of Columbia. The largest job increases occurred in California (+675,000), Texas (+657,600), and Florida (+428,200).” https://www.bls.gov/news.release/laus.nr0.htm

Ten of California’s 11 industry sectors had growth of nonfarm payroll jobs in November compared with eight of 11 adding employment in October. Leisure and hospitality employers led the way in new hires for November, adding 13,900 jobs versus 13,500 in October. According to the EDD, "November employment grew due to hiring in amusement parks, arcades, and limited-service diners."

Educational and health services employment was a close second to leisure and hospitality employment creation in November, with 13,400 new hires versus October’s 16,800. "Above-average hiring occurred in elementary and secondary schools, along with business, technical, and trade schools and educational support services," the EDD reported.

Trade, transportation and utilities shed 20,400 jobs in November after gaining 4,600 in October. “This is seasonally adjusted data,” according to Jeffrey Michael, Director of Public Policy Programs and professor of public policy at Pacific McGeorge School of Law in Sacramento, “and the seasonally adjusted decline is mostly in retail trade. Thus, the interpretation is that retailers have not increased hiring for the holiday season as much as in the past. Without seasonal adjustment, the data shows an increase in retail hiring, just not as much as in past holiday seasons.”

In November, California’s coastal counties continued to have lower unemployment rates than inland areas. For instance, "San Francisco County, north of Silicon Valley, had a 2.3% unemployment rate versus a rate of 16.7% in Imperial County, east of San Diego," according to the EDD’s preliminary and not seasonally adjusted labor force data.

The focus of the work of The Center Square California is state and local-level government and economic reporting that approaches stories with a taxpayer sensibility.